Final warning from Income tax department for non-submission of ITR V

Posted on May 13, 2016

Final warning from Income tax department for non-submission of ITR V pending for returns filed electronically without digital signature for the A.Y.2009-2010, 2010-2011, 2011-2012, 2012-2013, 2013-2014, 2014-2015

Avoid declaration of your income tax return as non-est in law and other consequences of non filing. Don’t miss the deadline of 31.08.2016, take it seriously.

Have you filed the ITR V to Bengaluru or have verified the ITR V through EVC?? If not, than do immediately before 31.08.2016.

Income tax department has recently issued a circular dated 09.05.2016 bearing no 13/2016 whereby taxpayers have been given last opportunity in way of a final warning to complete the process of filing of income tax return filed electronically without digital signature till 31.08.2016. As we all know that income tax returns which are filed electronically are to be verified. How we verify the e returns? Latest being the EVC mechanism, however for old returns whereby ITR V were not received by CPC, EVC mechanism for verification was not available. Now the taxpayer has been permitted to use EVC mechanism for verification of old e-filed returns. In case taxpayer who are facing problems with regard to usage of EVC mechanism, the old system of verification of return can be used i.e. sending the authenticated ITR V to CPC Bengaluru within 120 days of efiling the income tax return.

Under the earlier system of efiling, in tax returns which were to be filed electronically without a digital signature, taxpayer had to take printout of ITR V receipt and send it to CPC, Bengaluru within 120 days of efiling of income tax returns.

In view of difficulties faced by tax payers in the process from time to time, it has been noticed by the income tax department that a large number of such electronically filed returns without digital signature still remain pending with the income tax department for want of receipt of a valid ITR V receipt at CPC, Bengaluru from the concerned taxpayers.

Income tax department on earlier occasions has given the relaxations by extending the time limit for verification of returns filed electronically without digital signature. However in spite of these relaxations, it appears that problem is still sustaining.

The matter has been examined by the department; therefore Central board of direct taxes has issued this circular for permitting the taxpayer for verification of such returns also through EVC. However such verification process must be completed by 31.08.2016. As an alternative to EVC, the taxpayer is allowed to send a duly signed copy of ITR-V to the CPC by 31.08.2016 by the speed post not ordinary post.

In such a cases CBDT also relaxes the time frame for issuing the intimation under section 143(1) of the act and directs that such returns shall be processed by 30.11.2016 and intimation be sent as per the laid procedure. For interest on refund, the provisions of section 244A (2) would apply.

Also in the situations where taxpayer had submitted the ITRV after the extended date at earlier occasions but before this circular comes in the force, the same shall be treated as valid compliance of this order and dealt with accordingly. However this relaxation shall not apply to those cases where during the intervening period, department has already taken recourse to any other measure as specified in the act for ensuring the filing of tax returns by the tax payer concerned after declaring the return as Non-est.

It is also clarified that this is the final opportunity being provided to the taxpayers to regularize their pending income tax returns pertaining to the A.Y.2009-2010 till 2014-2015 which were filed as per the provisions of section 139 of the act but were declared Non-est or have remained pending for verification just for the want of receipt of a valid ITR V receipt at CPC, Bengaluru. In case the taxpayer concerned does not get his return regularized or miss the deadline of 31.08.2016, necessary consequences as provided in law for non filing the return may follow. Principal DGIT(Systems) shall take all necessary measures to duly inform the taxpayers which are proposed to be covered by this. However it is suggested to avoid waiting for information, please check out suo-moto by logging to income tax efiling site or contact your chartered accountant or legal advisor as the case may be for completing the verification of return for the said assessment years.